Dollar weakens as markets watch Middle East and next week's Fed meeting

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The dollar weakened against major currencies today, as investors monitor the situation in the Middle East and the Federal Reserve's monetary policy meeting next week. As of 22:17 Thailand time, the dollar index was down 0.14% to 101.297, with the dollar falling 0.10% to 1.139 against the euro and weakening 0.12% to 163.65 yen. Yemen's Houthi rebels issued a statement confirming that the Bab el-Mandeb strait is not closed, and that the naval blockade only applies to ships linked to Saudi Arabia. Meanwhile, President Donald Trump warned that if the Houthis attack ships in the strait again, the United States will strike Iran and the Houthis heavily. For the Fed meeting on July 28-29, CME Group's FedWatch Tool indicates that investors see a 64.2% chance the Fed will hold rates at 3.50% to 3.75%, and an 80.1% chance of at least a 0.25% rate hike to 3.75% to 4.00% at the September meeting.

Impact on stocks 0